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1 net present value
Finthe value of an investment calculated as the sum of its initial cost and the present value of expected future cash flows.Abbr. NPVEXAMPLEA positive NPV indicates that the project should be profitable, assuming that the estimated cash flows are reasonably accurate. A negative NPV indicates that the project will probably be unprofitable and therefore should be adjusted, if not abandoned altogether.NPV enables a management to consider the time-value of money it will invest. This concept holds that the value of money increases with time because it can always earn interest in a savings account. When the time-value-of-money concept is incorporated in calculation of NPV, the value of a project’s future net cash receipts in “today’s money” can be determined. This enables proper comparisons between different projects.For example, if Global Manufacturing Inc. is considering the acquisition of a new machine, its management will consider all the factors: initial purchase and installation costs; additional revenues generated by sales of the new machine’s products, plus the taxes on these new revenues. Having accounted for these factors in its calculations, the cash flows that Global Manufacturing projects will generate from the new machine are:
At first glance, it appears that cash-flows total 45% more than the $100,000 initial cost, a sound investment indeed. But time-value of NPV calculation money shrinks return on the project considerably, since future dollars are worth less than present dollars in hand. NPV accounts for these differences with the help of presentvalue tables, which list the ratios that express the present value of expected cash-flow dollars, based on the applicable interest rate and the number of years in question.
In the example, Global Manufacturing’s cost of capital is 9%. Using this figure to find the corresponding ratios on the present value table, the $100,000 investment cost, expected annual revenues during the five years in question, the NPV calculation is shown below.NPV is still positive. So, on this basis at least, the investment should proceed. -
2 выработанная величина
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3 выработанная величина
значение функции полезности; величина выигрыша — merit value
абсолютная величина, абсолютное значение — absolute value
стандартное значение; стандартная величина — standard value
коэффициент излучения; величина излучения — emittance value
величина излучения; коэффициент излучения — radiation value
Русско-английский военно-политический словарь > выработанная величина
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4 величина
Авиация и космонавтика. Русско-английский словарь > величина
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5 заданная величина
1. desired value2. set valueРусско-английский большой базовый словарь > заданная величина
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6 обратная величина
1. inverse value2. multiplicative inverse3. reciprocal value4. reciprocal quantity5. reciprocalотношение обратных величин; обратное отношение — reciprocal ratio
Русско-английский большой базовый словарь > обратная величина
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7 входная величина
1. input quantity2. input valueРусско-английский большой базовый словарь > входная величина
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8 пороговая величина
1. threshold quantityпороговое значение; пороговая величина — threshold value
2. threshold value3. thresholdРусско-английский большой базовый словарь > пороговая величина
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9 абсолютная величина
Русско-английский большой базовый словарь > абсолютная величина
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10 значимая величина
Русско-английский большой базовый словарь > значимая величина
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11 мнимая величина
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12 элементарная величина
Русско-английский большой базовый словарь > элементарная величина
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13 постоянная величина
1. stationary value2. constant -
14 предельная величина
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15 эффективная величина
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16 абсолютная величина
Русско-английский новый политехнический словарь > абсолютная величина
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17 среднеквадратичная величина
Русско-английский военно-политический словарь > среднеквадратичная величина
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18 пороговая величина
Русско-английский словарь по информационным технологиям > пороговая величина
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19 заданная величина
Авиация и космонавтика. Русско-английский словарь > заданная величина
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20 задающая величина
Авиация и космонавтика. Русско-английский словарь > задающая величина
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